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Global Balanced

Can anyone identify a Global 60/40 Balanced Index fund that is competitive with VBINX? Multiple indexes within the fund is acceptable.

Comments

  • @shipwreckedandalone: Ranking World Allocation Fund U.S. News & World Report.
    Regards,
    Ted
    http://money.usnews.com/funds/mutual-funds/rankings/world-allocation
  • @shipwreckedandalone, I would take a look at AOR, which is a global 60/40 ETF having adequate daily trading volume and a reasonably low expense ratio. You could also use VBINX and add VXUS and BNDX to create your own index mix.

    Kevin
  • @shipwreckedandalone I like VSMGX which is a Vanguard fund consisting of 4 index funds: 2 domestic and 2 international (one of each of those is a total stock fund and the other two are total bond funds). The try to keep it close to a 60/40 ratio.
  • Thanks for the input. Both Scott Burns and Merriman have shown splitting up the 60% equity side into US Large, US small, Reits, International and Emerging Mkts will outperform the CRSP US Total Mkt Index over time (VBIAX equity side of 60/40). My data shows this portfolio 60/40 will produce 9.32% CAGR since 2002 while VBIAX had 7.62%. That would compound greatly over time. Max drawdown was 4 percentage points higher than VBIAX and beta appeared to be 15% higher. So.....its a matter of personal choice I guess but not a bad option. Not sure which way I will go. Simplicity with VBIAX costs you a little. VBIAX made changes to their benchmark index equity side that has improved their performance around 2006. AOR looks good with limited track record but it is outperforming near term but needs a big down market to properly test it. Put AOR on watch list. This might be in the vein of what K O'Reilly is doing.
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